ARCHER2 will be 5 times faster than the current supercomputer, called ARCHER.
The new systen, housed at the Edinburgh University's Advanced Computing Facility at Easter Bush, will be integral in aiding discoveries in medicine, climate science and aerospace.
It will also build on previous British breakthroughs in targeted treatments for arthritis and HIV.
Edinburgh University will work with United Kingdom Research and Innovation (UKRI) to install the high performance computing service over the next year.
"ARCHER2 will provide UK science with an unparalleled capability to model and simulate the world around us. This is a real vote of confidence in the Edinburgh University's supercomputing centre, EPCC, which is internationally recognised for its excellence in computational science", according to Professor Mark Parsons, EPCC Director.